November 2013 UK Value Investor For Defensive Value Investors The value of long-term active investors When I began to invest about 20 years ago I started out as a passive investor. It was then, and is now, the best way to invest in terms of the balance between effort, risk and returns. Until recently I still told investors to look at passive investing as a starting point, before even thinking about either fund manager picking or stock picking. However, recently I have started to change my opinion. I now think that investors should pick actively managed funds with an explicitly long-term focus, or become an active and direct stock picker themselves, rather than take the passive route. The passive argument is simple. As the mass of active investors try to work out the correct price of an investment, they inevitably push its price towards their combined best answer. If the price was obviously too low (or too high) investors would buy (or sell) which would push the price up (or down). That is how the efficient market works. The problem is that passive investing is growing, and passive investing by definition is passive - it pays no consideration to the companies in an index; it just owns them all. As passive investing grows more and more popular we will eventually see companies where their largest shareholders are passive funds who, by definition, are passive. Passive investors are less likely to question company management about pay levels, internal investment decisions, environmental and sustainability issues, or anything else for that matter. The management of these companies will be under ever less pressure to deliver long-term value to shareholders, rather than whatever is in their own short-term interests. On the other hand, active investors (either yourself or the managers of any active funds that you own) have the potential to positively influence the companies they invest in as well as the wider economy. The recent shareholder spring was one of the few occasions where active investors behaving as engaged and active owners of capital made the news. Most of the time they do not, but truly active long-term investors remain a vital driver of effective capital allocation decisions within our economy. John Kingham, 1st November 2013 [Investors] can endeavour to take advantage of short-term opportunities, effectively to win against other investors, or they can seek to nurture genuine economic growth in which they can participate." The Marathon Club Contents Market Valuation, Forecast and Asset Allocation Page 2 Model Portfolio Review Page 3 Buying: Admiral Group PLC Page 7 FTSE All-Share Stock Screens Page 12 UK Value Investor provides information, not advice. It is for investors who want to make their own investment decisions and are capable of doing so without advice. If you think you need advice then you should seek a professional advisor. Please see the important notes on the back page for further information. Page 1
Market valuation, forecast and asset allocation The UK equity markets have surged again during October, with the FTSE 100 ending the month up around 4% at 6,731, well within reach of its all-time high. At this rate the large cap index could very easily end the year at a level which has never been seen before. How such an event would affect the market is unknowable, but if I had to guess (and I don t) then I would say that it could kick-start another leg of the bull market which we ve seen since 2009. The UK economy is gradually recovering and that, combined with news of all-time highs in the stock market, could pull in retail investors from other asset classes (such as cash, bond and property). FTSE 100 at 6,731 Cyclically Adjusted P/E Ratio Description Ben Graham Equity Allocation (%) 7 Year Annualised Return Forecast (%) 12,800-14,700 26-30 Very expensive 25-2.3 to -0.2 10,800-12,800 22-26 Expensive 25 to 35-0.2 to 2.2 8,800-10,800 18-22 Slightly expensive 35 to 45 2.2 to 5.3 6,900-8,800 14-18 Normal 45 to 55 5.3 to 9.0 5,900-6,900 12-14 Slightly cheap 55 to 65 9.0 to 11.5 4,900-5,900 10-12 Cheap 65 to 75 11.5 to 14.4 3,900-4,900 8-10 Very cheap 75 14.4 to 18.2 However, unlike the FTSE 100 s previous flirtations with 7,000, this time it does it with a reasonable, if not especially attractive, valuation. In 2000, when we first reached 7,000, the index s price was almost 30 times its average earnings over the previous decade. In 2007 when we came close one again, valuations were less extreme thanks to both inflation and the underlying growth of the UK and global economies. Less extreme does not mean cheap though, as the market was still priced at almost 20 times the previous decade s earnings. And now in 2013, an incredible 13 years after we first reached this level, inflation and economic growth have combined to push earnings higher, which means that 7,000 is no longer remotely expensive. If we do hit that level before the end of the year I think we could easily see 8,000 by the end of 2014. 16,000 FTSE 100 Valuations - 1988 to 2013 8,000 4,000 2,000 1,000 500 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 CAPE 30 CAPE 26 CAPE 22 CAPE 18 CAPE 14 CAPE 12 CAPE 10 CAPE 8 FTSE 100 Page 2
Model portfolio review Last month s sell decision Last month Go-Ahead left the portfolio at 16.97 per share. The original purchase price was 13.04, so capital gains were just over 30%. 1.065 was received in dividends, which is just over 8% of the original investment, so total returns were just over 38%, or 36% after commission and stamp duty. The holding period was 18 months which gives an annualised return of just over 21%. When will the bull market end? Along with the general market, the model portfolio has also had a good run and hit another new high in October, up to 67,713. In 2012 the portfolio gained 20.4% as the market gained 13.9%, and this year the portfolio is up over 20% again, as is the All-Share index on a total return basis. While annual gains of more than 20% are welcome, they are not sustainable in the long-term. If you look at the dividend payments in that time then their annual totals have increased by around 10% in the last year, not 20%. The difference between dividend growth and capital value growth is in part due to an increase in the valuation multiple that investors are paying for that dividend. This shows up in the lower dividend yields that we re seeing now, relative to where they were. For example, a year ago the model portfolio yield was 4.8% and the index benchmark was at 3.2%, while today they are at 4% and 2.9% respectively. But as I noted in the market valuation section, we re a long way from bubble territory and valuations are not excessive. New model income portfolio From this month onward I ll be tracking a new income portfolio and income benchmark (based on a FTSE All-Share tracking investment trust) alongside the existing dividend reinvestment model portfolio. The new income portfolio is essentially the same as the existing portfolio, with the same holdings in approximately the same weightings, except for these differences: The income portfolio and its benchmark will pay out most of their dividends once a year. Rather than pay out all dividends, a cash buffer will be used to smooth out the payments so that the income paid out goes up every year, preferably ahead of inflation. The cash buffer should be approximately equal to one year s income, so around four or five percent of the whole portfolio on average. My aim is that this income portfolio will stand as evidence that equities can be a good source of steady and progressive inflation-beating income for the long-term. You can see how the income portfolio and its index benchmark are progressing so far below. Year (March) Model Portfolio Capital Value Cash Balance Income Drawn Income as % of Current Value Income as % of Original investment 2011 50,000 100% 0 0.0% 0.0% 2012 49,500 27.1% 1,800 3.6% 3.6% Income Growth 2013 54,974 10.6% 1,980 3.6% 4.0% 10.0% Totals 3,780 7.6% Year (March) Page 3 Index Benchmark Capital Value Cash Balance Income Drawn Income as % of Current Value Income as % of Original investment 2011 50,000 100% 0 0.0% 0.0% 2012 50,184 2.4% 1,500 3.0% 3.0% Income Growth 2013 55,676 2.3% 1,650 3.0% 3.3% 10.0% Totals 3,150 6.3%
Model portfolio performance and statistics 70,000 65,000 60,000 55,000 50,000 45,000 Model Portfolio Total Return Average Investor FTSE All-Share Tracker Total Return Bad Investor 40,000 Mar-11 Jun-11 Sep-11 Dec-11 Mar- 12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Note that the average investor and bad investor underperform the market by 3% and 6% per year respectively due to overtrading, buying high and selling low. These figures are based on research cited by Barclays and the book, Monkey with a Pin. Performance (%) Model Portfolio (A) FTSE All-Share Tracker Trust (B) Difference (A) - (B) 1 Year 21.1 22.6-1.5 Total return from inception (March 2011) 35.4 32.2 3.3 Annualised return from inception 12 11 1 Current cash value 67,713 66,085 1,628 Historic dividend yield 4 2.9 1.1 Trailing 1 year beta (lower = less risk) 0.54 1 56% less volatile UK Revenue 51% International Revenue 49% Size Allocation Industry Allocation Industrials, 33% Financials, 15% Consumer Services, 13% Large Cap, 52% Mid Cap, 30% Small Cap, 18% Consumer Goods, 11% Utilities, 7% Basic Materials, 7% Telecommunications, 5% Health Care, 4% Oil & Gas, 4% Page 4
Model Portfolio Current Holdings Value/growth factors: Green = better than FTSE100, Light Red = worse than FTSE100 Rank: Green = high, Amber = medium, Light Red = low - may be sold soon Rank Weight Name EPIC Index Sector Price PE Ratio Value Div.Yield Value PE10 Growth Rate Growth Quality Debt Ratio UK Focus Purchase Date 1 1.1% Chemring Group PLC CHG FTSE 250 Aerospace & Defense 2.18 9.0 4.4% 8.4 27.1% 93% 3.7 15% 18/04/2011 2 3.9% AstraZeneca PLC AZN FTSE 100 Pharmaceuticals & Biotechnology 33.09 9.2 5.4% 11.1 13.6% 90% 0.9 21% 13/06/2011 4 3.1% Homeserve PLC HSV FTSE 250 Support Services 2.34 11.5 4.8% 13.4 12.7% 93% 1.2 75% 05/08/2013 7 3.7% BHP Billiton PLC BLT FTSE 100 Mining 19.31 13.1 3.9% 13.3 18.3% 90% 4.2 1% 12/09/2011 9 3.8% SSE PLC SSE FTSE 100 Electricity 14.16 17.7 5.9% 15.6 12.8% 88% 3.9 98% 01/11/2011 10 3.2% Tullett Prebon PLC TLPR FTSE 250 Financial Services 3.18 7.7 5.3% 8.4 12.2% 86% 1.8 59% 05/09/2011 11 3.0% Tesco PLC TSCO FTSE 100 Food & Drug Retailers 3.64 9.6 4.1% 13.9 9.3% 95% 2.7 67% 11/06/2012 12 2.9% Morrison (Wm) Supermarkets PLC MRW FTSE 100 Food & Drug Retailers 2.82 11.0 4.2% 17.3 17.3% 93% 3.4 100% 07/05/2013 13 4.0% Balfour Beatty PLC BBY FTSE 250 Construction & Materials 2.86 10.5 4.9% 11.3 11.1% 88% 2.8 50% 09/08/2011 14 5.0% Vodafone Group PLC VOD FTSE 100 Mobile Telecommunications 2.25 13.7 4.5% 15.2 8.6% 95% 3.0 12% 02/06/2011 15 2.9% Centrica PLC CNA FTSE 100 Gas, Water & Multiutilities 3.53 10.6 4.6% 16.1 10.4% 93% 2.6 71% 10/08/2012 17 3.1% Imperial Tobacco Group PLC IMT FTSE 100 Tobacco 23.29 11.4 4.5% 18.4 13.0% 93% 4.2 19% 08/03/2013 18 4.6% MITIE Group PLC MTO FTSE 250 Support Services 3.15 14.3 3.3% 19.8 13.2% 98% 2.5 100% 16/09/2011 20 2.8% Rio Tinto PLC RIO FTSE 100 Mining 31.58 8.0 3.4% 10.4 18.9% 86% 2.2 10% 07/09/2012 22 4.0% Braemar Shipping Services PLC BMS Small Cap Industrial Transportation 5.37 16.1 4.8% 13.1 7.2% 88% 0.0 68% 13/05/2011 23 5.4% BAE Systems PLC BA. FTSE 100 Aerospace & Defense 4.55 13.7 4.3% 14.5 11.6% 88% 1.7 21% 21/06/2011 25 2.6% ICAP PLC IAP FTSE 250 Financial Services 3.85 14.1 5.7% 14.2 10.4% 86% 1.9 30% 10/04/2012 26 4.2% JD Sports Fashion PLC JD. Small Cap General Retailers 11.36 12.5 2.3% 15.4 20.8% 93% 0.1 82% 16/03/2011 29 2.7% Greggs PLC GRG FTSE 250 Food & Drug Retailers 4.60 12.6 4.2% 14.3 6.7% 90% 0.0 100% 07/12/2012 30 3.6% Hill & Smith Holdings PLC HILS Small Cap Industrial Engineering 4.82 13.8 3.1% 17.2 11.3% 93% 2.4 75% 07/06/2013 31 3.6% British American Tobacco PLC BATS FTSE 100 Tobacco 34.36 16.4 3.9% 24.7 12.6% 95% 2.1 11% 09/09/2013 32 3.8% Cranswick PLC CWK FTSE 250 Food Producers 10.71 13.8 2.8% 18.2 9.9% 95% 0.5 97% 06/11/2012 40 3.1% Amlin PLC AML FTSE 250 Nonlife Insurance 4.26 7.9 5.6% 10.5 3.9% 83% 0.0 23% 08/02/2013 43 2.7% RSA Insurance Group PLC RSA FTSE 100 Nonlife Insurance 1.28 9.9 5.7% 9.4 4.4% 79% 0.0 36% 09/01/2012 46 5.7% Mears Group PLC MER Small Cap Support Services 4.28 18.0 1.9% 25.3 16.3% 98% 2.2 100% 24/03/2011 72 3.6% BP PLC BP. FTSE 100 Oil & Gas Producers 4.83 12.4 4.5% 10.0-0.5% 79% 2.1 30% 04/03/2011 102 3.0% Aviva PLC AV. FTSE 100 Life Insurance 4.49 9.2 4.2% 11.3-1.4% 73% 0.0 51% 12/03/2012 5.2% Cash
Recent Interim Results 29 th October 2013 - Braemar Shipping (added to model portfolio on 13 th May 2011) Braemar is a leading provider of services to the shipping and energy industries globally. The Group is divided into four operating divisions: Shipbroking, Technical, Logistics and Environmental. These work together to offer a unique combination of skills for clients. (www.braemarplc.com) Revenue down 17% Adjusted EPS down 15% Dividend unchanged Quotes from the interim results In the first half the oversupply of tonnage in most shipping sectors continued to depress the markets and our shipbroking income. However, our Technical and Logistics businesses performed well and enabled us to ride the cycle and produce a solid result. Braemar Seascope [Shipbroking division] felt the impact of low freight rates and vessel values, which served to reduce income even though transaction volumes were maintained. The division finished the first half with some optimism, boosted by a resurgence in dry bulk rates and the addition of significant newbuilding business. Braemar Technical Services ("BTS") [Technical division] ]has reported an excellent half year performance, demonstrating its broad-ranging capability with a widespread global presence. In particular, BTS is providing expertise to several large, long-term oil and gas projects as well as fulfilling the role of technical consultant to a number of LNG interests. Our Logistics division, Cory Brothers, continues to see its profitability grow with a strong contribution from ship agency and an improving logistics business. After several tough years, there is now a degree of optimism in some shipping markets that a cyclical recovery is underway. This is most evident in the volume of new vessels being ordered and the rise in dry bulk chartering rates. Shipping is intrinsically linked to wider global economic conditions where a gradual improvement can be expected over a number of years. We expect our Shipbroking division to produce an improved performance in the second half of the year and our Technical, Logistics and Environmental divisions to continue with a similar level of activity to the first half. Overall our full year expectation remains unchanged. Compared with their predecessors, modern investors concentrate too much on annual, quarterly, or even monthly valuation of what they hold, and on capital appreciation and depreciation generally; and too little either on immediate yield or on future prospects and intrinsic worth. John Maynard Keynes, 1938 It is the strongly held belief of the Marathon Club that this short-term focus by all parties leads to investment choices being made which fail to maximise the longer-term financial performance of client portfolios, investee companies and the wider economy. Investors are forming their decisions on outcomes that cannot be reliably forecast. Managers are allocating capital to value-destroying projects which, nevertheless, deliver on short-term targets such as analysts earnings per share estimates. Businesses are being valued on the basis of accounting metrics that do not capture the effect of extra-financial factors on long-term operating performance. In receipt of the wrong signals from investors, investment managers are in danger of inefficiently allocating capital. The Marathon Club (in association with the Universities Superannuation Scheme) Page 6
Buying: Admiral Group PLC (ADM) Price on 1st November 2013 1,279p Market cap 3.5 billion Index FTSE 100 Revenue 2.2 billion Sector Non-life Insurance Pre-tax profit 345 million The Admiral Group is a highly profitable and fast-growing financial services intermediary. It now employs over 6,500 people at its offices in the UK, Canada, Spain, Italy, France, US and India. All its growth has been organic. (www.admiralgroup.co.uk) Overview Admiral Group is the company behind the well-known Admiral car insurance brand, as well as a few others like Elephant.co.uk and Confused.com. It began life in 1993 as a new entrant to the then relatively new direct insurance market. Its market was, and to a large extent still is, higher premium business such as city-dwelling young people. It has grown rapidly from a standing start, up and through its listing on the stock exchange in 2004 to today where it is a multi-billion pound FTSE 100 listed company. Along the way it has helped to disrupt the existing insurance market with the direct model pioneered by Direct Line. Part of this strategy was the creation of Confused.com as the UK s first insurance comparison site, reducing the cost (in terms of time and effort) of switching from your existing insurance company (probably a higher cost company that distributes insurance through a network of insurance brokers) to, preferrably, Admiral who operate a lower-cost direct-to-market model. Today Admiral is a very successful company with an enviably progressive record of profitable growth. 10Yr Growth rate 14% Growth quality Dividend yield 7.1% Debt ratio (max 5) Pension ratio (max 10) Valuation (PE10) 22.2 Rank 96% Green = Better than FTSE 100, Red = Worse than FTSE 100 0 0 8 (out of 219) Adj.Earnings (left axis) Dividends (left axis) Revenue (right axis) P e n c e p e r s h a r e 100 90 80 70 60 50 40 30 20 10 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2,500 2,000 1,500 1,000 500 0 M i l l i o n s Page 7
Investment analysis Successful investing requires the methodical application of a systematic approach in order to achieve specific objectives, and a checklist is a great aid towards that end. This checklist helps to ensure that the company under investigation is high quality, and that its shares are likely to improve the portfolio in the long-run. Are there less than three companies from this FTSE sector already in the portfolio? YES Admiral is in the Non-life Insurance sector, along with two existing holdings, Amlin and RSA. This means that I won t add any more Non-life insurance companies after Admiral, unless one of these three is sold. Beyond simply the sector there is some cross-over between Admiral, RSA (via its More Than brand) Amlin (via its Motor Fleet insurance products) and Aviva, where all four insure UK cars to some extent. However, Admiral is the only one that has UK car insurance as the majority of its business. The other companies all have car insurance, and UK car insurance in particular, as relatively small parts of their total income. On that basis I don t think Admiral will make the portfolio over exposed to the UK car insurance market. Will this company increase the geographic diversity of the portfolio? NO Admiral does not increase the geographic diversity of the portfolio because it generates 10% of its turnover from overseas, while the portfolio overall is closer to 50%. Admiral does have plans to expand internationally, so over time I would expect the percentage of revenue generated internationally to increase. However, given that Admiral will make the portfolio more UK focused I will be looking for a more international company next time. Is the company free of dependency risks, e.g. from a small number of key customers, suppliers or staff? NO The main dependency risk that came up during my analysis was the coinsurance and reinsurance agreements which are used to place 75% of the insurance business that Admiral writes. In order to run a low-cost, capital-light business, Admiral makes use of an unusual degree of coinsurance and reinsurance, effectively passing 75% of each policy s risk to other insurance companies. This allows Admiral to grow rapidly and increase returns on equity and returns to shareholders. However, it does mean that Admiral is dependent on these contracts staying in place and on broadly similar terms, and Admiral is reliant upon just a handful of insurance companies. The existing contracts are in place up to the 2014-2016 period, and beyond that they will need to be re-negotiated. If they cannot be rolled over on good terms, or at all, then the volumes that Admiral can put through will be hurt, or less profitable. These arrangements, and their predecessors, have been used at Admiral for many years and I could find no obvious reason to expect that they won t continue in an approximately similar form in the future, but they still represent a dependency risk. Is the company in the leading group within its industry? YES Admiral is one of the top 5 private car insurers in the UK. Does the company have a consistent and successful history? YES Admiral floated on the stock exchange in 2004 and has produced consistently high rates of profitable, organic growth in every year. Does the company have any low cost and durable competitive advantages? YES Admiral has some competitive advantages, but they are not all low cost and durable, as Warren Buffett would say. Admiral s strategy is to get car drivers to switch from their existing policies to Admiral (via any of the Admiral brands), and then to retain them as policy holders by providing a good service at a low price. Page 8
As a direct insurer Admiral has a low-cost advantage over traditional insurers who use insurance brokers. Admiral has an interest in stirring up the car insurance market and increasing the number of policy holders who want to switch. They do this by operating insurance comparison web sites such as Confused.com in the UK and CompareNow.com in the US. These websites reduce switching costs (i.e. the barriers that customers have from switching from their current provider to a new provider) because you don t have to look through the yellow pages and talk to lots of different brokers. This leads to more people looking to switch, especially when the cyclical car insurance market is in its price increase phase (i.e. people tend to look for new insurance when their renewal premium goes up, but not if it has gone down). Once somebody is looking to switch then Admiral can compete on service and price, and attempt to retain them by doing a good job at a good price. Another relatively mild advantage is their brand name (an intangible asset advantage), which is a relatively low cost and durable advantage over less well-known insurers. Has the company been free of major crises during the last decade? If there were any, were they resolved successfully? YES Admiral has had a very smooth ride since they listed back in 2004. In almost every year there has been nothing to report but good news and steady, progressive growth. But in 2011 the company went through a brief rough patch. It would be hard to call 2011 a crisis from an operational point of view, but with a 50% decline in share price it was definitely a crisis for shareholders. So what went wrong? Not much in fact. In the third quarter the company announced that earnings would be towards the bottom end of expectations. This was due to slightly higher than expected claim levels which, due to the levering effect of Admiral s heavy use of coinsurance and reinsurance, led to magnified reductions in profit growth. Note that I said reductions in profit growth, not profits, because profits in 2011 still grew by more than 13%. The other factor that spooked the market was the announcement by the Government that personal injury referral fees from legal firms were to be banned. Admiral estimated that earnings lost from this source would amount to around 6%. The combination of these two factors which, with hindsight, now appear to have been relatively minor, were the cause of a savage 50% share price decline. This is a lesson, if ever one were needed, that Mr Market can get very depressed, or very excited, over very minor events. Is the company free of current problems or risks (including excessive debt) which could materially impact its future prosperity? YES Admiral doesn t seem to have any obvious problems at the moment beyond the minor bumps that you have to expect with most companies, most of the time. So why does a company with a double digit growth rate have a dividend yield close to 7%? I think there are several reasons. The first is that Admiral has always traded on a relatively modest multiple, at least relative to dividends. The company is unusual in that it pays out almost 100% of its earnings as dividends. This means that even now with a dividend yield of more than 7%, the PE ratio is 13.4. All those investors that screen primarily on PE ratios (and there are many) will not find Admiral very interesting. For dividend investors, the problem is that although the yield is astonishingly high, it is broken into two parts: the normal dividend, which in 2012 was 22.7p, and a special dividend, which in 2012 was 27.9p. Page 9
Usually a special dividend is a one-off; something that happens once in a blue moon, but Admiral s is different. For some reason or other the company has decided on a dividend policy of paying 45% of profits out as the normal dividend, and topping that up, so far every year, with a special dividend. The special dividend is made up of surplus cash, after taking into account our required solvency, provision for our overseas expansion plans, and a margin for contingencies. On that basis the special dividend doesn t appear to be a typical special dividend, and so I have considered it as part of the normal dividend for valuation purposes, rather than as a special one-off distribution. My expectation, which I think is reasonable, is that the special portion of the dividend will continue to be paid. These issues have a permanent dampening effect on Admiral s share price, and the problems of 2011, although relatively minor, have further depressed the share price, potentially making it more attractive. Is it highly unlikely that the company s economic engine will become obsolete in the next decade? YES Insurance is something that will always be needed and car insurance, although commoditised, is mandatory and therefore relatively immune to economic cycles. I think it s reasonable to expect that the car insurance business will change in the years ahead, but that it will still be around, and will probably be bigger than it is today in 10, 50 or 100 years. However, Admiral is not without risk and 2011 showed that some major risks stem from its heavy use of coinsurance and reinsurance. These are a form of operational leverage and while leverage magnifies profits and increases return on equity, it can also magnify earnings volatility and losses. Making the trade Shares in Admiral Group will be added to the model portfolio a few days after this issue is published, with the usual position size of approximately 1/30 th of the portfolio s total value. Higher ranked companies that were skipped over FirstGroup PLC Vedanta Resources PLC Phoenix IT Group PLC Reason for not investing The recent large rights issue means that past per share results do not relate well to future per share results. Too much debt Too UK focused and too small The most important change in my 40 years of investing has probably been in investors time horizons. Today the majority of investors Ben Graham would call them speculators are focused so closely on this week, this month and this quarter. Stocks are bought and sold on penny deviations from short-term estimates, which is mind-boggling. Crazy as it is, we can t complain it just creates more opportunities for investors with longer time horizons. William Nasgovitz We have no problem buying things that take a long time to play out. Call me lazy, but I don't want to worry about last week's same-store sales or next week's oil price. Jeffrey Schwarz Please remember that this investment analysis is for education only. It should not be construed as advice and should not be relied upon before investing. You should perform your own analysis and independent factual verification. If you need advice you should seek a financial advisor. Please see the important notes on the last page. Page 10
A quick guide to the model portfolio and stock screen Portfolio management policies and procedures Deliberate Diversification - To reduce the risks that come with each individual company and its shares, it is generally considered a good idea to hold a widely diversified portfolio. The model portfolio is diversified in terms of the number of companies (with a target of 30 equally weighted holdings), the industrial spread of those companies (no more than 2 or 3 from the same Sector) and their geographic spread (no more than 50% of portfolio revenue to be generated in the UK). Continuous Portfolio Improvement - A portfolio of stocks is a dynamic entity much like a garden. If it is left unmanaged (as with a pure buy-and-hold portfolio) there is a risk that over time the portfolio will drift away from its original goal. For example a high yield portfolio may become an average yield portfolio if the share prices of all the holdings increase faster than the dividends. To avoid this, the portfolio is actively managed to make sure that it only contains high quality companies with attractively valued shares. Each month a company is either added to or removed from the portfolio based on its Stock Screen rank and various other factors. Buy and sell procedures Buy Decisions - Each buy decision starts by looking through the Stock Screen for the highest ranked stock which is not already in the portfolio and which has a debt ratio of less than five (a debt ratio of more than five is highlighted in red). The second step is to enter the companies results from the past decade into the investment analysis worksheet or spreadsheet which are available on the website. This makes it easier to see if the past results do actually match what the stock screen suggests, in terms of profitability, growth and consistency. If all of that looks okay then the next step is to check the total defined pension benefit liabilities to see if they are excessive relative to the company s earnings power. Another step is to review the qualitative history of the company over the past decade, i.e. to read its annual reports in order to get a picture of what it has been doing and what problems it has faced in recent years. Finally, all these strands are pulled together to try to answer the questions in the investment analysis checklist about the company s past, its present and its potential future. Sell Decisions - Sell decisions are made primarily on an existing holdings rank, with the lowest ranked shares most likely to be sold. However, there is a degree of subjectivity involved and it isn t a purely mechanical process. For example, companies which are surrounded by a reasonable amount of good news are more likely to be sold than those which are still unloved, or which are still in the middle of a turnaround strategy. The Stock Screen The stock screen ranks stocks based on a combination of their cyclically adjusted earnings and dividend yields, as well as the long-term growth rate and quality of that growth. Each of these factors is based on academic research and together create a unique screen which focuses high yield shares from companies which have produced high quality results in the past. Page 11
Stock Screen - Sorted by Rank Colour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high Share (Value) (Value) (Growth) (Growth) Debt Earnings Rank Name EPIC Index Sector Price PE Ratio Div.Yield PE10 Rate Quality Ratio Power (m) 1 Chemring Group PLC CHG FTSE 250 Aerospace & Defense 2.18 9.0 4.4% 8.4 27.1% 93% 3.7 93 2 AstraZeneca PLC AZN FTSE 100 Pharmaceuticals & Biotechnology 33.09 9.2 5.4% 11.1 13.6% 90% 0.9 6,748 3 FirstGroup PLC FGP FTSE 250 Travel & Leisure 1.16 5.4 5.4% 3.9 6.3% 90% 4.3 645 4 Homeserve PLC HSV FTSE 250 Support Services 2.34 11.5 4.8% 13.4 12.7% 93% 1.2 107 5 Phoenix IT Group PLC PNX Small Cap Software & Computer Services 1.47 10.0 5.3% 6.3 11.3% 86% 2.9 30 6 Vedanta Resources PLC VED FTSE 100 Mining 10.63 32.8 3.5% 10.7 15.6% 90% 22.9 478 7 BHP Billiton PLC BLT FTSE 100 Mining 19.31 13.1 3.9% 13.3 18.3% 90% 4.2 5,528 8 Admiral Group PLC ADM FTSE 100 Nonlife Insurance 12.79 13.5 7.1% 22.2 14.0% 96% 0.0 307 9 SSE PLC SSE FTSE 100 Electricity 14.16 17.7 5.9% 15.6 12.8% 88% 3.9 1,541 10 Tullett Prebon PLC TLPR FTSE 250 Financial Services 3.18 7.7 5.3% 8.4 12.2% 86% 1.8 141 11 Tesco PLC TSCO FTSE 100 Food & Drug Retailers 3.64 9.6 4.1% 13.9 9.3% 95% 2.7 4,021 12 Morrison (Wm) Supermarkets PLC MRW FTSE 100 Food & Drug Retailers 2.82 11.0 4.2% 17.3 17.3% 93% 3.4 707 13 Balfour Beatty PLC BBY FTSE 250 Construction & Materials 2.86 10.5 4.9% 11.3 11.1% 88% 2.8 308 14 Vodafone Group PLC VOD FTSE 100 Mobile Telecommunications 2.25 13.7 4.5% 15.2 8.6% 95% 3.0 13,662 15 Centrica PLC CNA FTSE 100 Gas, Water & Multiutilities 3.53 10.6 4.6% 16.1 10.4% 93% 2.6 2,079 16 Carillion PLC CLLN FTSE 250 Support Services 3.04 8.8 5.7% 11.3 11.1% 86% 4.1 198 17 Imperial Tobacco Group PLC IMT FTSE 100 Tobacco 23.29 11.4 4.5% 18.4 13.0% 93% 4.2 2,278 18 MITIE Group PLC MTO FTSE 250 Support Services 3.15 14.3 3.3% 19.8 13.2% 98% 2.5 114 19 Sainsbury (J) PLC SBRY FTSE 100 Food & Drug Retailers 3.95 14.3 4.2% 23.4 23.4% 90% 4.8 579 20 Rio Tinto PLC RIO FTSE 100 Mining 31.58 8.0 3.4% 10.4 18.9% 86% 2.2 7,388 21 British Sky Broadcasting Group PLC BSY FTSE 100 Media 9.38 8.5 3.2% 20.3 13.9% 98% 2.0 1,439 22 Braemar Shipping Services PLC BMS Small Cap Industrial Transportation 5.37 16.1 4.8% 13.1 7.2% 88% 0.0 16 23 BAE Systems PLC BA. FTSE 100 Aerospace & Defense 4.55 13.7 4.3% 14.5 11.6% 88% 1.7 1,777 24 Pennon Group PLC PNN FTSE 250 Gas, Water & Multiutilities 6.81 12.3 4.2% 20.1 10.9% 95% 11.1 239 25 ICAP PLC IAP FTSE 250 Financial Services 3.85 14.1 5.7% 14.2 10.4% 86% 1.9 301 26 JD Sports Fashion PLC JD. Small Cap General Retailers 11.36 12.5 2.3% 15.4 20.8% 93% 0.1 66 27 Chesnara PLC CSN Small Cap Life Insurance 2.92 10.2 5.9% 15.3 5.4% 89% 0.0 39 28 Halfords Group PLC HFD FTSE 250 General Retailers 4.24 15.0 4.0% 13.5 6.1% 88% 1.1 110 29 Greggs PLC GRG FTSE 250 Food & Drug Retailers 4.60 12.6 4.2% 14.3 6.7% 90% 0.0 59 30 Hill & Smith Holdings PLC HILS Small Cap Industrial Engineering 4.82 13.8 3.1% 17.2 11.3% 93% 2.4 40 31 British American Tobacco PLC BATS FTSE 100 Tobacco 34.36 16.4 3.9% 24.7 12.6% 95% 2.1 5,013 32 Cranswick PLC CWK FTSE 250 Food Producers 10.71 13.8 2.8% 18.2 9.9% 95% 0.5 55 33 Royal Dutch Shell PLC RDSB FTSE 100 Oil & Gas Producers 21.60 9.2 5.1% 10.2 8.6% 81% 1.1 21,232 34 Reckitt Benckiser Group PLC RB. FTSE 100 Household Goods & Home Construction 48.48 19.6 2.8% 29.8 17.0% 100% 1.4 2,336 35 National Grid PLC NG. FTSE 100 Gas, Water & Multiutilities 7.85 12.8 5.2% 14.9 7.5% 86% 8.4 3,362 36 Beazley PLC BEZ FTSE 250 Nonlife Insurance 2.29 9.0 3.6% 13.7 10.8% 86% 0.0 149 37 Sage Group (The) PLC SGE FTSE 100 Software & Computer Services 3.37 17.0 3.2% 22.7 13.1% 93% 0.7 303 38 Stagecoach Group PLC SGC FTSE 250 Travel & Leisure 3.52 12.2 2.4% 19.7 14.3% 90% 4.4 186 39 Serco Group PLC SRP FTSE 250 Support Services 5.57 14.7 1.8% 24.5 17.4% 100% 3.4 227 40 Amlin PLC AML FTSE 250 Nonlife Insurance 4.26 7.9 5.6% 10.5 3.9% 83% 0.0 337 41 Smiths News PLC NWS Small Cap Support Services 2.10 12.3 4.4% 14.5 6.4% 86% 2.3 46 42 Huntsworth PLC HNT Small Cap Media 0.66 10.8 5.3% 7.1 5.1% 81% 1.5 48 43 RSA Insurance Group PLC RSA FTSE 100 Nonlife Insurance 1.28 9.9 5.7% 9.4 4.4% 79% 0.0 785 44 Intermediate Capital Group PLC ICP FTSE 250 Financial Services 4.80 14.7 4.2% 10.9-1.1% 87% 3.8 309 45 Brown (N) Group PLC BWNG FTSE 250 General Retailers 5.25 18.4 2.6% 25.4 11.9% 95% 2.2 111 46 Mears Group PLC MER Small Cap Support Services 4.28 18.0 1.9% 25.3 16.3% 98% 2.2 33 47 Headlam Group PLC HEAD Small Cap Household Goods & Home Construction 3.97 15.7 3.7% 13.7-2.4% 88% 0.8 43 48 G4S PLC GFS FTSE 100 Support Services 2.62 13.2 3.4% 19.5 12.2% 88% 6.7 367 49 Wood Group (John) PLC WG. FTSE 250 Oil Equipment, Services & Distribution 8.12 17.3 1.3% 13.4 29.0% 86% 0.5 389 50 Marston's PLC MARS FTSE 250 Travel & Leisure 1.52 13.2 4.0% 10.7-1.4% 83% 8.7 136 51 Morgan Sindall PLC MGNS Small Cap Construction & Materials 7.92 10.8 3.4% 10.1 6.1% 76% 0.1 52 52 DCC PLC DCC FTSE 250 Support Services 27.99 16.8 2.5% 21.6 14.0% 88% 4.3 191 53 Hyder Consulting PLC HYC Small Cap Support Services 5.46 11.6 2.2% 17.1 22.7% 88% 0.4 22 54 Synergy Health PLC SYR FTSE 250 Health Care Equipment & Services 10.37 18.8 2.0% 29.2 16.4% 98% 5.0 41 55 Charles Taylor PLC CTR Small Cap Financial Services 2.23 13.9 4.5% 10.1-1.0% 81% 2.8 15 56 BG Group PLC BG. FTSE 100 Oil & Gas Producers 12.74 12.4 1.3% 18.6 14.7% 93% 2.2 4,335 57 Barclays PLC BARC FTSE 100 Banks 2.64 60.5 2.3% 8.0-9.2% 82% 0.0 8,756 58 Anglo Pacific Group PLC APF Small Cap Mining 2.22 34.9 4.6% 18.4 9.5% 83% 0.0 22 59 Capita Group (The) PLC CPI FTSE 100 Support Services 9.86 23.4 2.4% 32.7 14.8% 98% 4.0 388 60 Menzies (John) PLC MNZS FTSE 250 Support Services 8.19 12.1 3.1% 18.1 4.4% 93% 2.5 51 61 Standard Chartered PLC STAN FTSE 100 Banks 15.00 12.6 3.6% 15.2 7.1% 86% 0.0 4,093 62 Catlin Group Ltd CGL FTSE 250 Nonlife Insurance 5.12 10.7 5.8% 12.1 4.4% 80% 0.0 245 63 Aggreko PLC AGK FTSE 100 Support Services 16.10 16.1 1.5% 31.7 26.5% 100% 2.3 273 64 Greene King PLC GNK FTSE 250 Travel & Leisure 8.25 16.1 3.2% 16.8 5.5% 88% 7.9 189 65 Atkins (W S) PLC ATK FTSE 250 Support Services 12.34 13.2 2.6% 17.5 9.2% 88% 0.9 124 66 GlaxoSmithKline PLC GSK FTSE 100 Pharmaceuticals & Biotechnology 16.44 18.1 4.5% 18.2 3.9% 88% 2.4 7,719 67 Go-Ahead Group (The) PLC GOG FTSE 250 Travel & Leisure 16.82 13.5 4.8% 11.9 5.1% 76% 3.6 93 68 Fenner PLC FENR FTSE 250 Industrial Engineering 4.00 12.9 2.6% 25.1 12.8% 90% 3.7 56 69 Management Consulting Group PLC MMC Small Cap Support Services 0.25 7.5 3.3% 5.0 1.5% 81% 1.2 39 70 Cobham PLC COB FTSE 250 Aerospace & Defense 2.88 14.7 3.1% 21.8 12.7% 88% 2.5 252 71 Investec PLC INVP FTSE 250 Financial Services 4.37 12.8 4.1% 10.9 0.1% 82% 0.0 401 72 BP PLC BP. FTSE 100 Oil & Gas Producers 4.83 12.4 4.5% 10.0-0.5% 79% 2.1 14,274 73 Chime Communications PLC CHW Small Cap Media 3.17 62.5 2.3% 20.5 13.8% 88% 0.5 26 74 Domino's Pizza UK & IRL PLC DOM FTSE 250 Travel & Leisure 5.86 23.1 2.5% 48.1 25.7% 100% 1.2 40 75 Restaurant Group (The) PLC RTN FTSE 250 Travel & Leisure 5.76 23.6 2.0% 34.6 13.3% 100% 0.8 67 76 NCC Group PLC NCC Small Cap Software & Computer Services 1.64 23.1 1.9% 40.0 23.9% 100% 1.8 17 77 Croda International PLC CRDA FTSE 100 Chemicals 24.36 18.8 2.4% 39.6 24.3% 98% 1.6 163 78 Domino Printing Sciences PLC DNO FTSE 250 Electronic & Electrical Equipment 6.92 21.2 3.0% 27.8 12.3% 90% 0.7 51 79 Antofagasta PLC ANTO FTSE 100 Mining 8.55 8.8 1.6% 14.1 16.8% 83% 1.2 994 80 HSBC Holdings PLC HSBA FTSE 100 Banks 6.82 13.8 4.2% 11.7 0.2% 79% 0.0 17,113 81 Fisher (James)& Sons PLC FSJ FTSE 250 Industrial Transportation 11.12 20.4 1.6% 28.2 12.5% 98% 2.1 39 82 Victrex PLC VCT FTSE 250 Chemicals 16.50 19.5 2.3% 33.8 15.7% 95% 0.0 79 83 Spirax-Sarco Engineering PLC SPX FTSE 250 Industrial Engineering 29.18 22.8 1.9% 34.3 12.8% 100% 0.4 128 84 Marks & Spencer Group PLC MKS FTSE 100 General Retailers 5.04 17.0 3.4% 14.9 2.8% 83% 2.5 910 85 Ladbrokes PLC LAD FTSE 250 Travel & Leisure 1.91 9.0 4.7% 8.1-4.1% 76% 1.3 330
Stock Screen - Sorted by Rank Colour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high Share (Value) (Value) (Growth) (Growth) Debt Earnings Rank Name EPIC Index Sector Price PE Ratio Div.Yield PE10 Rate Quality Ratio Power (m) 86 Fidessa Group PLC FDSA FTSE 250 Software & Computer Services 20.25 25.2 1.8% 40.2 21.3% 98% 0.0 37 87 Man Group PLC EMG FTSE 250 Financial Services 0.89-5.7 16.2% 4.7-8.1% 71% 1.1 494 88 Vitec Group (The) PLC VTC Small Cap Industrial Engineering 7.03 14.8 3.1% 19.3 7.4% 86% 2.7 28 89 Centaur Media PLC CAU Small Cap Media 0.56 16.3 4.3% 12.4-4.0% 81% 2.2 10 90 IMI PLC IMI FTSE 100 Industrial Engineering 15.19 18.6 2.1% 30.1 10.9% 98% 0.8 309 91 AMEC PLC AMEC FTSE 100 Oil Equipment, Services & Distribution 11.77 15.2 3.1% 28.1 14.8% 88% 0.8 220 92 Bunzl PLC BNZL FTSE 100 Support Services 13.77 22.4 2.0% 30.7 9.3% 100% 2.8 299 93 William Hill PLC WMH FTSE 100 Travel & Leisure 4.01 16.3 2.6% 16.7-8.2% 90% 1.1 376 94 RPS Group PLC RPS FTSE 250 Support Services 2.90 22.7 2.2% 22.5 11.3% 90% 0.6 51 95 Smith & Nephew PLC SN. FTSE 100 Health Care Equipment & Services 7.97 14.4 2.1% 22.4 13.1% 90% 0.5 577 96 Weir Group PLC WEIR FTSE 100 Industrial Engineering 22.55 17.0 1.7% 34.5 21.6% 95% 4.1 265 97 Speedy Hire PLC SDY Small Cap Support Services 0.65 75.6 0.8% 9.0-25.9% 81% 1.2 61 98 PayPoint PLC PAY FTSE 250 Support Services 10.41 23.0 2.9% 32.7 12.3% 93% 0.0 40 99 RPC Group PLC RPC FTSE 250 General Industrials 5.10 13.4 2.9% 20.5 11.5% 86% 3.0 71 100 Diageo PLC DGE FTSE 100 Beverages 19.87 18.8 2.4% 29.9 8.1% 95% 3.2 3,173 101 Darty PLC DRTY Small Cap General Retailers 0.83 19.4 3.6% 6.4-10.6% 71% 1.9 98 102 Aviva PLC AV. FTSE 100 Life Insurance 4.49 9.2 4.2% 11.3-1.4% 73% 0.0 1,704 103 WPP Group PLC WPP FTSE 100 Media 13.25 20.2 2.2% 29.3 12.8% 93% 4.2 1,126 104 CRH PLC CRH FTSE 100 Construction & Materials 15.23 24.4 2.9% 15.3 3.8% 83% 3.3 1,213 105 Clarkson PLC CKN Small Cap Industrial Transportation 20.16 28.8 2.5% 17.7 7.2% 86% 0.0 37 106 Rotork PLC ROR FTSE 250 Industrial Engineering 28.63 28.2 1.5% 47.5 17.5% 100% 0.0 105 107 Anglo-Eastern Plantations PLC AEP Small Cap Food Producers 6.75 8.2 0.4% 12.6 15.6% 81% 0.4 35 108 Halma PLC HLMA FTSE 250 Electronic & Electrical Equipment 5.49 23.8 1.9% 35.8 9.8% 100% 1.4 116 109 Meggitt PLC MGGT FTSE 100 Aerospace & Defense 5.73 17.7 2.1% 28.7 11.6% 90% 2.6 287 110 Renishaw PLC RSW FTSE 250 Electronic & Electrical Equipment 16.22 17.2 2.5% 31.2 12.9% 90% 0.0 68 111 SABMiller PLC SAB FTSE 100 Beverages 32.54 23.1 2.0% 37.5 13.6% 95% 4.6 2,655 112 Fuller Smith & Turner PLC FSTA Small Cap Travel & Leisure 9.08 20.7 1.5% 29.9 10.5% 98% 7.2 19 113 St Ives PLC SIV Small Cap Support Services 1.81 13.2 3.6% 10.2-10.6% 69% 1.0 29 114 Intertek Group PLC ITRK FTSE 100 Support Services 33.32 27.6 1.2% 49.7 18.8% 100% 3.3 216 115 ITE Group PLC ITE FTSE 250 Media 3.22 24.8 2.0% 34.2 12.7% 93% 0.7 44 116 Pearson PLC PSON FTSE 100 Media 13.04 25.5 3.5% 27.3 6.7% 88% 3.3 689 117 Cable & Wireless Communications PLC CWC FTSE 250 Fixed Line Telecommunications 0.47 24.9 5.5% 17.2 1.7% 74% 11.7 102 118 Spectris PLC SXS FTSE 250 Electronic & Electrical Equipment 23.12 19.3 1.7% 35.3 13.9% 95% 1.9 148 119 FTSE 100 6,731 15.8 3.5% 15.1 3.6% 81% 120 Whitbread PLC WTB FTSE 100 Travel & Leisure 34.33 22.1 1.7% 38.3 14.0% 95% 1.7 308 121 Bloomsbury Publishing PLC BMY Small Cap Media 1.73 15.8 3.2% 14.8 1.0% 83% 0.0 14 122 Dairy Crest Group PLC DCG FTSE 250 Food Producers 5.37 11.7 3.9% 13.6 1.0% 74% 4.4 80 123 Communisis PLC CMS Small Cap Support Services 0.63 11.3 2.6% 9.7-9.5% 69% 2.4 17 124 Keller Group PLC KLR FTSE 250 Construction & Materials 10.51 19.4 2.2% 17.1 5.7% 86% 1.4 75 125 Senior PLC SNR FTSE 250 Aerospace & Defense 2.98 16.2 1.6% 27.3 18.7% 88% 1.4 80 126 Aberdeen Asset Management PLC ADN FTSE 100 Financial Services 4.43 25.2 2.6% 46.5 20.1% 90% 11.6 207 127 Ultra Electronics Holdings PLC ULE FTSE 250 Aerospace & Defense 19.34 20.7 2.1% 28.8 13.6% 88% 0.9 82 128 Premier Farnell PLC PFL FTSE 250 Support Services 2.26 15.0 4.6% 17.1 4.8% 67% 4.5 65 129 Babcock International Group PLC BAB FTSE 100 Support Services 12.75 21.2 2.1% 36.8 21.9% 90% 3.1 227 130 KCOM Group PLC KCOM FTSE 250 Fixed Line Telecommunications 1.01 12.2 4.4% 17.6 8.3% 79% 2.2 46 131 Burberry Group PLC BRBY FTSE 100 Personal Goods 15.35 19.6 1.9% 37.7 17.1% 93% 0.4 336 132 Diploma PLC DPLM FTSE 250 Support Services 6.93 24.4 2.1% 46.9 15.3% 95% 0.1 32 133 4imprint Group PLC FOUR Small Cap Media 6.28 26.9 2.5% 32.6 7.7% 93% 0.7 10 134 Provident Financial PLC PFG FTSE 250 Financial Services 15.80 14.5 4.9% 22.6 4.2% 83% 7.4 162 135 Low & Bonar PLC LWB Small Cap Construction & Materials 0.77 16.7 3.1% 13.9-1.4% 76% 3.9 28 136 De La Rue PLC DLAR FTSE 250 Support Services 8.55 16.9 5.0% 18.8 5.5% 76% 1.5 69 137 Aveva Group PLC AVV FTSE 250 Software & Computer Services 25.86 35.2 1.0% 55.2 27.1% 95% 0.0 57 138 London Stock Exchange Group PLC LSE FTSE 100 Financial Services 16.42 21.8 1.8% 29.1 13.8% 88% 3.0 270 139 Severn Trent PLC SVT FTSE 100 Gas, Water & Multiutilities 18.57 22.4 4.1% 23.4 2.4% 86% 14.8 325 140 Interserve PLC IRV FTSE 250 Support Services 6.14 19.0 3.3% 21.7 6.2% 83% 0.8 61 141 PZ Cussons PLC PZC FTSE 250 Personal Goods 3.94 23.3 1.9% 30.7 10.3% 93% 1.0 102 142 Computacenter PLC CCC FTSE 250 Software & Computer Services 5.94 15.1 2.9% 21.4 9.3% 83% 0.3 64 143 Barr (A G) PLC BAG FTSE 250 Beverages 5.24 22.5 1.9% 35.3 8.5% 98% 0.8 34 144 Millennium & Copthorne Hotels PLC MLC FTSE 250 Travel & Leisure 5.70 15.1 2.4% 18.9 9.1% 83% 2.2 163 145 United Utilities Group PLC UU. FTSE 100 Gas, Water & Multiutilities 7.05 19.9 4.9% 16.6-4.0% 74% 14.4 428 146 Informa PLC INF FTSE 250 Media 5.60 16.2 3.3% 23.6 7.6% 86% 3.4 245 147 Laird PLC LRD FTSE 250 Technology Hardware & Equipment 2.50 19.0 4.0% 18.2-2.7% 83% 2.9 61 148 Paragon Group of Companies (The) PLC PAG FTSE 250 Financial Services 3.39 10.8 1.8% 4.9-12.4% 75% 28.7 319 149 Devro PLC DVO FTSE 250 Food Producers 3.16 16.1 2.7% 26.2 10.9% 86% 0.9 35 150 Hays PLC HAS FTSE 250 Support Services 1.25 24.3 2.0% 17.1 0.2% 79% 0.9 161 151 Kier Group PLC KIE FTSE 250 Construction & Materials 18.09 17.6 3.8% 17.5 4.7% 79% 1.2 89 152 Rexam PLC REX FTSE 100 General Industrials 5.20 13.9 2.9% 15.3 0.7% 79% 5.3 421 153 Tate & Lyle PLC TATE FTSE 100 Food Producers 7.92 13.8 3.3% 17.9 2.2% 81% 2.7 333 154 Compass Group PLC CPG FTSE 100 Travel & Leisure 8.97 28.8 2.4% 38.1 11.6% 90% 2.3 768 155 Telecom plus PLC TEP FTSE 250 Fixed Line Telecommunications 15.43 40.4 2.0% 74.0 25.5% 90% 0.1 27 156 Unilever PLC ULVR FTSE 100 Food Producers 25.25 20.3 3.1% 20.2 5.2% 83% 3.0 2,732 157 F&C UK Real Estate Investment Ltd FCRE Small Cap Real Estate Investment & Services 0.79 44.7 8.4% 17.5-2.4% 60% 9.9 11 158 Vp PLC VP. Small Cap Support Services 4.98 20.7 2.5% 25.7 7.6% 86% 4.1 13 159 Smiths Group PLC SMIN FTSE 100 General Industrials 14.35 15.1 2.8% 20.2 6.0% 81% 2.5 454 160 Marshalls PLC MSLH Small Cap Construction & Materials 1.74 23.6 3.0% 15.2-10.3% 69% 2.5 31 161 Prudential PLC PRU FTSE 100 Life Insurance 12.79 14.4 2.3% 30.6 7.8% 90% 0.0 1,938 162 Shanks Group PLC SKS Small Cap Support Services 1.06 21.8 3.3% 16.0-1.8% 76% 8.8 40 163 Electrocomponents PLC ECM FTSE 250 Support Services 2.98 19.1 3.9% 20.2 1.4% 71% 1.9 93 164 Lavendon Group PLC LVD Small Cap Support Services 1.84 18.5 1.5% 12.1 4.8% 74% 2.9 38 165 ARM Holdings PLC ARM FTSE 100 Technology Hardware & Equipment 9.86 85.7 0.5% 202.7 21.7% 93% 0.0 126 166 United Drug PLC UDG FTSE 250 Food & Drug Retailers 3.12 18.6 0.5% 21.0 6.4% 86% 3.7 61 167 Old Mutual PLC OML FTSE 100 Life Insurance 2.04 15.8 3.4% 14.6-3.1% 79% 0.0 1,073 168 Brammer PLC BRAM Small Cap Support Services 4.84 23.1 1.9% 34.1 11.3% 90% 1.8 30 169 Next PLC NXT FTSE 100 General Retailers 54.45 18.6 1.9% 29.3 8.8% 90% 1.4 522 170 Tarsus PLC TRS Small Cap Media 2.47 30.7 2.8% 27.0 10.0% 81% 1.8 14
Stock Screen - Sorted by Rank Colour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high Share (Value) (Value) (Growth) (Growth) Debt Earnings Rank Name EPIC Index Sector Price PE Ratio Div.Yield PE10 Rate Quality Ratio Power (m) 171 Carr's Milling Industries PLC CRM Small Cap Food Producers 17.38 18.3 1.7% 26.8 9.0% 88% 2.5 10 172 Rolls-Royce Group PLC RR. FTSE 100 Aerospace & Defense 11.50 13.9 1.7% 32.1 10.5% 90% 1.7 1,218 173 Close Brothers Group PLC CBG FTSE 250 Financial Services 12.65 15.8 3.5% 19.4 1.6% 79% 0.0 152 174 Dignity PLC DTY FTSE 250 General Retailers 13.93 22.2 1.2% 34.1 11.2% 93% 8.3 40 175 Rathbone Brothers PLC RAT FTSE 250 Financial Services 16.34 24.4 2.9% 26.3 3.7% 86% 0.0 49 176 Associated British Foods PLC ABF FTSE 100 Food Producers 22.67 27.8 1.3% 39.8 8.6% 98% 1.6 881 177 Berendsen PLC BRSN FTSE 250 Support Services 9.71 23.2 2.6% 29.9 5.3% 88% 5.4 99 178 Euromoney Institutional Investor PLC ERM FTSE 250 Media 10.75 19.0 2.0% 28.9 6.7% 88% 0.5 83 179 BT Group PLC BT.A FTSE 100 Fixed Line Telecommunications 3.77 16.8 2.5% 21.1-2.2% 83% 4.3 2,354 180 Galliford Try PLC GFRD FTSE 250 Construction & Materials 11.46 16.6 3.2% 19.3 3.0% 83% 0.9 81 181 Ted Baker PLC TED FTSE 250 Personal Goods 17.07 32.5 1.6% 46.5 9.7% 95% 0.7 30 182 Reed Elsevier PLC REL FTSE 100 Media 8.74 19.3 2.6% 27.9 6.9% 83% 3.4 610 183 Goodwin PLC GDWN Small Cap Industrial Engineering 36.99 17.5 1.0% 38.8 13.9% 90% 1.5 12 184 Jardine Lloyd Thompson Group PLC JLT FTSE 250 Nonlife Insurance 10.01 18.9 2.5% 28.6 8.2% 81% 2.0 124 185 Genus PLC GNS FTSE 250 Pharmaceuticals & Biotechnology 13.20 35.8 1.2% 42.3 11.0% 93% 2.0 35 186 InterContinental Hotels Group PLC IHG FTSE 100 Travel & Leisure 18.17 15.7 2.3% 26.5 11.1% 81% 2.7 288 187 Ricardo PLC RCDO Small Cap Support Services 6.11 17.0 2.3% 23.0 5.4% 83% 0.0 23 188 S & U PLC SUS Small Cap Financial Services 14.55 15.8 3.2% 23.8 4.1% 81% 1.8 12 189 Johnson Matthey PLC JMAT FTSE 100 Chemicals 30.04 21.2 1.9% 29.5 11.1% 83% 2.7 347 190 British Polythene Industries PLC BPI Small Cap General Industrials 6.85 15.7 1.9% 17.0-1.4% 74% 1.5 16 191 Bodycote PLC BOY FTSE 250 Industrial Engineering 6.58 16.9 1.9% 29.4 7.0% 88% 0.6 75 192 Greencore Group PLC GNC FTSE 250 Food Producers 1.80 17.3 2.1% 19.6-3.2% 74% 5.3 55 193 Legal & General Group PLC LGEN FTSE 100 Life Insurance 2.16 15.4 3.5% 20.8 1.6% 76% 0.1 936 194 Dechra Pharmaceuticals PLC DPH FTSE 250 Pharmaceuticals & Biotechnology 6.90 43.5 2.0% 44.1 5.7% 93% 4.5 25 195 Brewin Dolphin Holdings PLC BRW FTSE 250 Financial Services 2.84 31.1 2.5% 29.7 6.7% 79% 0.0 41 196 Kingfisher PLC KGF FTSE 100 General Retailers 3.78 15.0 2.5% 20.7 2.8% 76% 0.7 660 197 F&C Asset Management PLC FCAM FTSE 250 Financial Services 1.02 19.9 3.0% 25.6-11.4% 57% 9.8 26 198 Robert Walters PLC RWA Small Cap Support Services 3.25 48.5 1.6% 28.2 6.2% 86% 1.0 15 199 BBA Aviation PLC BBA FTSE 250 Industrial Transportation 3.38 19.2 2.7% 21.2 1.1% 71% 3.3 109 200 Schroders PLC SDR FTSE 100 Financial Services 25.79 25.3 1.7% 33.7 9.6% 86% 6.2 359 201 UK Mail Group PLC UKM Small Cap Industrial Transportation 5.85 23.4 3.2% 27.9 3.3% 74% 0.1 17 202 Savills PLC SVS FTSE 250 Real Estate Investment & Services 6.50 20.1 1.5% 22.7 0.8% 83% 0.0 64 203 Daejan Holdings PLC DJAN FTSE 250 Real Estate Investment & Services 41.48 7.5 1.9% 22.9 2.6% 81% 6.0 48 204 Dialight PLC DIA FTSE 250 Electronic & Electrical Equipment 10.89 27.1 1.2% 62.5 12.4% 88% 0.0 10 205 Michael Page International PLC MPI FTSE 250 Support Services 4.85 34.0 2.1% 29.6 7.4% 81% 0.1 85 206 Bellway PLC BWY FTSE 250 Household Goods & Home Construction 15.04 16.8 2.0% 21.3-8.1% 83% 0.6 143 207 Hunting PLC HTG FTSE 250 Oil Equipment, Services & Distribution 8.92 19.8 2.1% 33.7 2.5% 90% 3.8 71 208 Porvair PLC PRV Small Cap Alternative Energy 2.57 25.9 1.0% 44.0 7.0% 90% 2.4 5 209 Boot (Henry) PLC BHY Small Cap Construction & Materials 1.81 25.3 2.6% 25.0-1.5% 79% 1.7 15 210 Consort Medical PLC CSRT Small Cap Health Care Equipment & Services 8.92 23.0 2.2% 21.8 0.9% 67% 0.0 16 211 Tullow Oil PLC TLW FTSE 100 Oil & Gas Producers 9.43 22.4 1.3% 46.8 14.6% 81% 2.5 297 212 Tribal Group PLC TRB Small Cap Support Services 1.88 21.5 0.7% 17.2-8.7% 74% 1.2 15 213 Smith (DS) PLC SMDS FTSE 250 General Industrials 3.03 19.3 2.6% 30.8 3.7% 81% 6.5 148 214 Wilmington Group PLC WIL Small Cap Media 2.16 28.7 3.2% 30.3 1.6% 67% 5.0 8 215 Oxford Instruments PLC OXIG FTSE 250 Electronic & Electrical Equipment 13.00 30.3 0.9% 62.8 16.9% 74% 0.0 17 216 St James's Place PLC STJ FTSE 250 Life Insurance 6.76 34.4 1.6% 48.4 8.5% 86% 0.0 123 217 Xaar PLC XAR FTSE 250 Electronic & Electrical Equipment 8.42 42.8 0.5% 93.3 9.6% 79% 0.1 11 218 Helical Bar PLC HLCL Small Cap Real Estate Investment & Services 3.00 60.0 1.9% 31.1-12.0% 74% 15.4 17 219 Carclo PLC CAR Small Cap Chemicals 3.76 53.9 0.7% 46.3 5.3% 79% 3.0 8
Stock Screen - Sorted by Name Colour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high Share (Value) (Value) (Growth) (Growth) Debt Earnings Rank Name EPIC Index Sector Price PE Ratio Div.Yield PE10 Rate Quality Ratio Power (m) 133 4imprint Group PLC FOUR Small Cap Media 6.28 26.9 2.5% 32.6 7.7% 93% 0.7 10 126 Aberdeen Asset Management PLC ADN FTSE 100 Financial Services 4.43 25.2 2.6% 46.5 20.1% 90% 11.6 207 8 Admiral Group PLC ADM FTSE 100 Nonlife Insurance 12.79 13.5 7.1% 22.2 14.0% 96% 0.0 307 63 Aggreko PLC AGK FTSE 100 Support Services 16.10 16.1 1.5% 31.7 26.5% 100% 2.3 273 91 AMEC PLC AMEC FTSE 100 Oil Equipment, Services & Distribution 11.77 15.2 3.1% 28.1 14.8% 88% 0.8 220 40 Amlin PLC AML FTSE 250 Nonlife Insurance 4.26 7.9 5.6% 10.5 3.9% 83% 0.0 337 58 Anglo Pacific Group PLC APF Small Cap Mining 2.22 34.9 4.6% 18.4 9.5% 83% 0.0 22 107 Anglo-Eastern Plantations PLC AEP Small Cap Food Producers 6.75 8.2 0.4% 12.6 15.6% 81% 0.4 35 79 Antofagasta PLC ANTO FTSE 100 Mining 8.55 8.8 1.6% 14.1 16.8% 83% 1.2 994 165 ARM Holdings PLC ARM FTSE 100 Technology Hardware & Equipment 9.86 85.7 0.5% 202.7 21.7% 93% 0.0 126 176 Associated British Foods PLC ABF FTSE 100 Food Producers 22.67 27.8 1.3% 39.8 8.6% 98% 1.6 881 2 AstraZeneca PLC AZN FTSE 100 Pharmaceuticals & Biotechnology 33.09 9.2 5.4% 11.1 13.6% 90% 0.9 6,748 65 Atkins (W S) PLC ATK FTSE 250 Support Services 12.34 13.2 2.6% 17.5 9.2% 88% 0.9 124 137 Aveva Group PLC AVV FTSE 250 Software & Computer Services 25.86 35.2 1.0% 55.2 27.1% 95% 0.0 57 102 Aviva PLC AV. FTSE 100 Life Insurance 4.49 9.2 4.2% 11.3-1.4% 73% 0.0 1,704 129 Babcock International Group PLC BAB FTSE 100 Support Services 12.75 21.2 2.1% 36.8 21.9% 90% 3.1 227 23 BAE Systems PLC BA. FTSE 100 Aerospace & Defense 4.55 13.7 4.3% 14.5 11.6% 88% 1.7 1,777 13 Balfour Beatty PLC BBY FTSE 250 Construction & Materials 2.86 10.5 4.9% 11.3 11.1% 88% 2.8 308 57 Barclays PLC BARC FTSE 100 Banks 2.64 60.5 2.3% 8.0-9.2% 82% 0.0 8,756 143 Barr (A G) PLC BAG FTSE 250 Beverages 5.24 22.5 1.9% 35.3 8.5% 98% 0.8 34 199 BBA Aviation PLC BBA FTSE 250 Industrial Transportation 3.38 19.2 2.7% 21.2 1.1% 71% 3.3 109 36 Beazley PLC BEZ FTSE 250 Nonlife Insurance 2.29 9.0 3.6% 13.7 10.8% 86% 0.0 149 206 Bellway PLC BWY FTSE 250 Household Goods & Home Construction 15.04 16.8 2.0% 21.3-8.1% 83% 0.6 143 177 Berendsen PLC BRSN FTSE 250 Support Services 9.71 23.2 2.6% 29.9 5.3% 88% 5.4 99 56 BG Group PLC BG. FTSE 100 Oil & Gas Producers 12.74 12.4 1.3% 18.6 14.7% 93% 2.2 4,335 7 BHP Billiton PLC BLT FTSE 100 Mining 19.31 13.1 3.9% 13.3 18.3% 90% 4.2 5,528 121 Bloomsbury Publishing PLC BMY Small Cap Media 1.73 15.8 3.2% 14.8 1.0% 83% 0.0 14 191 Bodycote PLC BOY FTSE 250 Industrial Engineering 6.58 16.9 1.9% 29.4 7.0% 88% 0.6 75 209 Boot (Henry) PLC BHY Small Cap Construction & Materials 1.81 25.3 2.6% 25.0-1.5% 79% 1.7 15 72 BP PLC BP. FTSE 100 Oil & Gas Producers 4.83 12.4 4.5% 10.0-0.5% 79% 2.1 14,274 22 Braemar Shipping Services PLC BMS Small Cap Industrial Transportation 5.37 16.1 4.8% 13.1 7.2% 88% 0.0 16 168 Brammer PLC BRAM Small Cap Support Services 4.84 23.1 1.9% 34.1 11.3% 90% 1.8 30 195 Brewin Dolphin Holdings PLC BRW FTSE 250 Financial Services 2.84 31.1 2.5% 29.7 6.7% 79% 0.0 41 31 British American Tobacco PLC BATS FTSE 100 Tobacco 34.36 16.4 3.9% 24.7 12.6% 95% 2.1 5,013 190 British Polythene Industries PLC BPI Small Cap General Industrials 6.85 15.7 1.9% 17.0-1.4% 74% 1.5 16 21 British Sky Broadcasting Group PLC BSY FTSE 100 Media 9.38 8.5 3.2% 20.3 13.9% 98% 2.0 1,439 45 Brown (N) Group PLC BWNG FTSE 250 General Retailers 5.25 18.4 2.6% 25.4 11.9% 95% 2.2 111 179 BT Group PLC BT.A FTSE 100 Fixed Line Telecommunications 3.77 16.8 2.5% 21.1-2.2% 83% 4.3 2,354 92 Bunzl PLC BNZL FTSE 100 Support Services 13.77 22.4 2.0% 30.7 9.3% 100% 2.8 299 131 Burberry Group PLC BRBY FTSE 100 Personal Goods 15.35 19.6 1.9% 37.7 17.1% 93% 0.4 336 117 Cable & Wireless Communications PLC CWC FTSE 250 Fixed Line Telecommunications 0.47 24.9 5.5% 17.2 1.7% 74% 11.7 102 59 Capita Group (The) PLC CPI FTSE 100 Support Services 9.86 23.4 2.4% 32.7 14.8% 98% 4.0 388 219 Carclo PLC CAR Small Cap Chemicals 3.76 53.9 0.7% 46.3 5.3% 79% 3.0 8 16 Carillion PLC CLLN FTSE 250 Support Services 3.04 8.8 5.7% 11.3 11.1% 86% 4.1 198 171 Carr's Milling Industries PLC CRM Small Cap Food Producers 17.38 18.3 1.7% 26.8 9.0% 88% 2.5 10 62 Catlin Group Ltd CGL FTSE 250 Nonlife Insurance 5.12 10.7 5.8% 12.1 4.4% 80% 0.0 245 89 Centaur Media PLC CAU Small Cap Media 0.56 16.3 4.3% 12.4-4.0% 81% 2.2 10 15 Centrica PLC CNA FTSE 100 Gas, Water & Multiutilities 3.53 10.6 4.6% 16.1 10.4% 93% 2.6 2,079 55 Charles Taylor PLC CTR Small Cap Financial Services 2.23 13.9 4.5% 10.1-1.0% 81% 2.8 15 1 Chemring Group PLC CHG FTSE 250 Aerospace & Defense 2.18 9.0 4.4% 8.4 27.1% 93% 3.7 93 27 Chesnara PLC CSN Small Cap Life Insurance 2.92 10.2 5.9% 15.3 5.4% 89% 0.0 39 73 Chime Communications PLC CHW Small Cap Media 3.17 62.5 2.3% 20.5 13.8% 88% 0.5 26 105 Clarkson PLC CKN Small Cap Industrial Transportation 20.16 28.8 2.5% 17.7 7.2% 86% 0.0 37 173 Close Brothers Group PLC CBG FTSE 250 Financial Services 12.65 15.8 3.5% 19.4 1.6% 79% 0.0 152 70 Cobham PLC COB FTSE 250 Aerospace & Defense 2.88 14.7 3.1% 21.8 12.7% 88% 2.5 252 123 Communisis PLC CMS Small Cap Support Services 0.63 11.3 2.6% 9.7-9.5% 69% 2.4 17 154 Compass Group PLC CPG FTSE 100 Travel & Leisure 8.97 28.8 2.4% 38.1 11.6% 90% 2.3 768 142 Computacenter PLC CCC FTSE 250 Software & Computer Services 5.94 15.1 2.9% 21.4 9.3% 83% 0.3 64 210 Consort Medical PLC CSRT Small Cap Health Care Equipment & Services 8.92 23.0 2.2% 21.8 0.9% 67% 0.0 16 32 Cranswick PLC CWK FTSE 250 Food Producers 10.71 13.8 2.8% 18.2 9.9% 95% 0.5 55 104 CRH PLC CRH FTSE 100 Construction & Materials 15.23 24.4 2.9% 15.3 3.8% 83% 3.3 1,213 77 Croda International PLC CRDA FTSE 100 Chemicals 24.36 18.8 2.4% 39.6 24.3% 98% 1.6 163 203 Daejan Holdings PLC DJAN FTSE 250 Real Estate Investment & Services 41.48 7.5 1.9% 22.9 2.6% 81% 6.0 48 122 Dairy Crest Group PLC DCG FTSE 250 Food Producers 5.37 11.7 3.9% 13.6 1.0% 74% 4.4 80 101 Darty PLC DRTY Small Cap General Retailers 0.83 19.4 3.6% 6.4-10.6% 71% 1.9 98 52 DCC PLC DCC FTSE 250 Support Services 27.99 16.8 2.5% 21.6 14.0% 88% 4.3 191 136 De La Rue PLC DLAR FTSE 250 Support Services 8.55 16.9 5.0% 18.8 5.5% 76% 1.5 69 194 Dechra Pharmaceuticals PLC DPH FTSE 250 Pharmaceuticals & Biotechnology 6.90 43.5 2.0% 44.1 5.7% 93% 4.5 25 149 Devro PLC DVO FTSE 250 Food Producers 3.16 16.1 2.7% 26.2 10.9% 86% 0.9 35 100 Diageo PLC DGE FTSE 100 Beverages 19.87 18.8 2.4% 29.9 8.1% 95% 3.2 3,173 204 Dialight PLC DIA FTSE 250 Electronic & Electrical Equipment 10.89 27.1 1.2% 62.5 12.4% 88% 0.0 10 174 Dignity PLC DTY FTSE 250 General Retailers 13.93 22.2 1.2% 34.1 11.2% 93% 8.3 40 132 Diploma PLC DPLM FTSE 250 Support Services 6.93 24.4 2.1% 46.9 15.3% 95% 0.1 32 78 Domino Printing Sciences PLC DNO FTSE 250 Electronic & Electrical Equipment 6.92 21.2 3.0% 27.8 12.3% 90% 0.7 51 74 Domino's Pizza UK & IRL PLC DOM FTSE 250 Travel & Leisure 5.86 23.1 2.5% 48.1 25.7% 100% 1.2 40 163 Electrocomponents PLC ECM FTSE 250 Support Services 2.98 19.1 3.9% 20.2 1.4% 71% 1.9 93 178 Euromoney Institutional Investor PLC ERM FTSE 250 Media 10.75 19.0 2.0% 28.9 6.7% 88% 0.5 83 197 F&C Asset Management PLC FCAM FTSE 250 Financial Services 1.02 19.9 3.0% 25.6-11.4% 57% 9.8 26 157 F&C UK Real Estate Investment Ltd FCRE Small Cap Real Estate Investment & Services 0.79 44.7 8.4% 17.5-2.4% 60% 9.9 11 68 Fenner PLC FENR FTSE 250 Industrial Engineering 4.00 12.9 2.6% 25.1 12.8% 90% 3.7 56 86 Fidessa Group PLC FDSA FTSE 250 Software & Computer Services 20.25 25.2 1.8% 40.2 21.3% 98% 0.0 37 3 FirstGroup PLC FGP FTSE 250 Travel & Leisure 1.16 5.4 5.4% 3.9 6.3% 90% 4.3 645 81 Fisher (James)& Sons PLC FSJ FTSE 250 Industrial Transportation 11.12 20.4 1.6% 28.2 12.5% 98% 2.1 39 119 FTSE 100 6,731 15.8 3.5% 15.1 3.6% 81% 112 Fuller Smith & Turner PLC FSTA Small Cap Travel & Leisure 9.08 20.7 1.5% 29.9 10.5% 98% 7.2 19
Stock Screen - Sorted by Name Colour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high Share (Value) (Value) (Growth) (Growth) Debt Earnings Rank Name EPIC Index Sector Price PE Ratio Div.Yield PE10 Rate Quality Ratio Power (m) 48 G4S PLC GFS FTSE 100 Support Services 2.62 13.2 3.4% 19.5 12.2% 88% 6.7 367 180 Galliford Try PLC GFRD FTSE 250 Construction & Materials 11.46 16.6 3.2% 19.3 3.0% 83% 0.9 81 185 Genus PLC GNS FTSE 250 Pharmaceuticals & Biotechnology 13.20 35.8 1.2% 42.3 11.0% 93% 2.0 35 66 GlaxoSmithKline PLC GSK FTSE 100 Pharmaceuticals & Biotechnology 16.44 18.1 4.5% 18.2 3.9% 88% 2.4 7,719 67 Go-Ahead Group (The) PLC GOG FTSE 250 Travel & Leisure 16.82 13.5 4.8% 11.9 5.1% 76% 3.6 93 183 Goodwin PLC GDWN Small Cap Industrial Engineering 36.99 17.5 1.0% 38.8 13.9% 90% 1.5 12 192 Greencore Group PLC GNC FTSE 250 Food Producers 1.80 17.3 2.1% 19.6-3.2% 74% 5.3 55 64 Greene King PLC GNK FTSE 250 Travel & Leisure 8.25 16.1 3.2% 16.8 5.5% 88% 7.9 189 29 Greggs PLC GRG FTSE 250 Food & Drug Retailers 4.60 12.6 4.2% 14.3 6.7% 90% 0.0 59 28 Halfords Group PLC HFD FTSE 250 General Retailers 4.24 15.0 4.0% 13.5 6.1% 88% 1.1 110 108 Halma PLC HLMA FTSE 250 Electronic & Electrical Equipment 5.49 23.8 1.9% 35.8 9.8% 100% 1.4 116 150 Hays PLC HAS FTSE 250 Support Services 1.25 24.3 2.0% 17.1 0.2% 79% 0.9 161 47 Headlam Group PLC HEAD Small Cap Household Goods & Home Construction 3.97 15.7 3.7% 13.7-2.4% 88% 0.8 43 218 Helical Bar PLC HLCL Small Cap Real Estate Investment & Services 3.00 60.0 1.9% 31.1-12.0% 74% 15.4 17 30 Hill & Smith Holdings PLC HILS Small Cap Industrial Engineering 4.82 13.8 3.1% 17.2 11.3% 93% 2.4 40 4 Homeserve PLC HSV FTSE 250 Support Services 2.34 11.5 4.8% 13.4 12.7% 93% 1.2 107 80 HSBC Holdings PLC HSBA FTSE 100 Banks 6.82 13.8 4.2% 11.7 0.2% 79% 0.0 17,113 207 Hunting PLC HTG FTSE 250 Oil Equipment, Services & Distribution 8.92 19.8 2.1% 33.7 2.5% 90% 3.8 71 42 Huntsworth PLC HNT Small Cap Media 0.66 10.8 5.3% 7.1 5.1% 81% 1.5 48 53 Hyder Consulting PLC HYC Small Cap Support Services 5.46 11.6 2.2% 17.1 22.7% 88% 0.4 22 25 ICAP PLC IAP FTSE 250 Financial Services 3.85 14.1 5.7% 14.2 10.4% 86% 1.9 301 90 IMI PLC IMI FTSE 100 Industrial Engineering 15.19 18.6 2.1% 30.1 10.9% 98% 0.8 309 17 Imperial Tobacco Group PLC IMT FTSE 100 Tobacco 23.29 11.4 4.5% 18.4 13.0% 93% 4.2 2,278 146 Informa PLC INF FTSE 250 Media 5.60 16.2 3.3% 23.6 7.6% 86% 3.4 245 186 InterContinental Hotels Group PLC IHG FTSE 100 Travel & Leisure 18.17 15.7 2.3% 26.5 11.1% 81% 2.7 288 44 Intermediate Capital Group PLC ICP FTSE 250 Financial Services 4.80 14.7 4.2% 10.9-1.1% 87% 3.8 309 140 Interserve PLC IRV FTSE 250 Support Services 6.14 19.0 3.3% 21.7 6.2% 83% 0.8 61 114 Intertek Group PLC ITRK FTSE 100 Support Services 33.32 27.6 1.2% 49.7 18.8% 100% 3.3 216 71 Investec PLC INVP FTSE 250 Financial Services 4.37 12.8 4.1% 10.9 0.1% 82% 0.0 401 115 ITE Group PLC ITE FTSE 250 Media 3.22 24.8 2.0% 34.2 12.7% 93% 0.7 44 184 Jardine Lloyd Thompson Group PLC JLT FTSE 250 Nonlife Insurance 10.01 18.9 2.5% 28.6 8.2% 81% 2.0 124 26 JD Sports Fashion PLC JD. Small Cap General Retailers 11.36 12.5 2.3% 15.4 20.8% 93% 0.1 66 189 Johnson Matthey PLC JMAT FTSE 100 Chemicals 30.04 21.2 1.9% 29.5 11.1% 83% 2.7 347 130 KCOM Group PLC KCOM FTSE 250 Fixed Line Telecommunications 1.01 12.2 4.4% 17.6 8.3% 79% 2.2 46 124 Keller Group PLC KLR FTSE 250 Construction & Materials 10.51 19.4 2.2% 17.1 5.7% 86% 1.4 75 151 Kier Group PLC KIE FTSE 250 Construction & Materials 18.09 17.6 3.8% 17.5 4.7% 79% 1.2 89 196 Kingfisher PLC KGF FTSE 100 General Retailers 3.78 15.0 2.5% 20.7 2.8% 76% 0.7 660 85 Ladbrokes PLC LAD FTSE 250 Travel & Leisure 1.91 9.0 4.7% 8.1-4.1% 76% 1.3 330 147 Laird PLC LRD FTSE 250 Technology Hardware & Equipment 2.50 19.0 4.0% 18.2-2.7% 83% 2.9 61 164 Lavendon Group PLC LVD Small Cap Support Services 1.84 18.5 1.5% 12.1 4.8% 74% 2.9 38 193 Legal & General Group PLC LGEN FTSE 100 Life Insurance 2.16 15.4 3.5% 20.8 1.6% 76% 0.1 936 138 London Stock Exchange Group PLC LSE FTSE 100 Financial Services 16.42 21.8 1.8% 29.1 13.8% 88% 3.0 270 135 Low & Bonar PLC LWB Small Cap Construction & Materials 0.77 16.7 3.1% 13.9-1.4% 76% 3.9 28 87 Man Group PLC EMG FTSE 250 Financial Services 0.89-5.7 16.2% 4.7-8.1% 71% 1.1 494 69 Management Consulting Group PLC MMC Small Cap Support Services 0.25 7.5 3.3% 5.0 1.5% 81% 1.2 39 84 Marks & Spencer Group PLC MKS FTSE 100 General Retailers 5.04 17.0 3.4% 14.9 2.8% 83% 2.5 910 160 Marshalls PLC MSLH Small Cap Construction & Materials 1.74 23.6 3.0% 15.2-10.3% 69% 2.5 31 50 Marston's PLC MARS FTSE 250 Travel & Leisure 1.52 13.2 4.0% 10.7-1.4% 83% 8.7 136 46 Mears Group PLC MER Small Cap Support Services 4.28 18.0 1.9% 25.3 16.3% 98% 2.2 33 109 Meggitt PLC MGGT FTSE 100 Aerospace & Defense 5.73 17.7 2.1% 28.7 11.6% 90% 2.6 287 60 Menzies (John) PLC MNZS FTSE 250 Support Services 8.19 12.1 3.1% 18.1 4.4% 93% 2.5 51 205 Michael Page International PLC MPI FTSE 250 Support Services 4.85 34.0 2.1% 29.6 7.4% 81% 0.1 85 144 Millennium & Copthorne Hotels PLC MLC FTSE 250 Travel & Leisure 5.70 15.1 2.4% 18.9 9.1% 83% 2.2 163 18 MITIE Group PLC MTO FTSE 250 Support Services 3.15 14.3 3.3% 19.8 13.2% 98% 2.5 114 51 Morgan Sindall PLC MGNS Small Cap Construction & Materials 7.92 10.8 3.4% 10.1 6.1% 76% 0.1 52 12 Morrison (Wm) Supermarkets PLC MRW FTSE 100 Food & Drug Retailers 2.82 11.0 4.2% 17.3 17.3% 93% 3.4 707 35 National Grid PLC NG. FTSE 100 Gas, Water & Multiutilities 7.85 12.8 5.2% 14.9 7.5% 86% 8.4 3,362 76 NCC Group PLC NCC Small Cap Software & Computer Services 1.64 23.1 1.9% 40.0 23.9% 100% 1.8 17 169 Next PLC NXT FTSE 100 General Retailers 54.45 18.6 1.9% 29.3 8.8% 90% 1.4 522 167 Old Mutual PLC OML FTSE 100 Life Insurance 2.04 15.8 3.4% 14.6-3.1% 79% 0.0 1,073 215 Oxford Instruments PLC OXIG FTSE 250 Electronic & Electrical Equipment 13.00 30.3 0.9% 62.8 16.9% 74% 0.0 17 148 Paragon Group of Companies (The) PLC PAG FTSE 250 Financial Services 3.39 10.8 1.8% 4.9-12.4% 75% 28.7 319 98 PayPoint PLC PAY FTSE 250 Support Services 10.41 23.0 2.9% 32.7 12.3% 93% 0.0 40 116 Pearson PLC PSON FTSE 100 Media 13.04 25.5 3.5% 27.3 6.7% 88% 3.3 689 24 Pennon Group PLC PNN FTSE 250 Gas, Water & Multiutilities 6.81 12.3 4.2% 20.1 10.9% 95% 11.1 239 5 Phoenix IT Group PLC PNX Small Cap Software & Computer Services 1.47 10.0 5.3% 6.3 11.3% 86% 2.9 30 208 Porvair PLC PRV Small Cap Alternative Energy 2.57 25.9 1.0% 44.0 7.0% 90% 2.4 5 128 Premier Farnell PLC PFL FTSE 250 Support Services 2.26 15.0 4.6% 17.1 4.8% 67% 4.5 65 134 Provident Financial PLC PFG FTSE 250 Financial Services 15.80 14.5 4.9% 22.6 4.2% 83% 7.4 162 161 Prudential PLC PRU FTSE 100 Life Insurance 12.79 14.4 2.3% 30.6 7.8% 90% 0.0 1,938 141 PZ Cussons PLC PZC FTSE 250 Personal Goods 3.94 23.3 1.9% 30.7 10.3% 93% 1.0 102 175 Rathbone Brothers PLC RAT FTSE 250 Financial Services 16.34 24.4 2.9% 26.3 3.7% 86% 0.0 49 34 Reckitt Benckiser Group PLC RB. FTSE 100 Household Goods & Home Construction 48.48 19.6 2.8% 29.8 17.0% 100% 1.4 2,336 182 Reed Elsevier PLC REL FTSE 100 Media 8.74 19.3 2.6% 27.9 6.9% 83% 3.4 610 110 Renishaw PLC RSW FTSE 250 Electronic & Electrical Equipment 16.22 17.2 2.5% 31.2 12.9% 90% 0.0 68 75 Restaurant Group (The) PLC RTN FTSE 250 Travel & Leisure 5.76 23.6 2.0% 34.6 13.3% 100% 0.8 67 152 Rexam PLC REX FTSE 100 General Industrials 5.20 13.9 2.9% 15.3 0.7% 79% 5.3 421 187 Ricardo PLC RCDO Small Cap Support Services 6.11 17.0 2.3% 23.0 5.4% 83% 0.0 23 20 Rio Tinto PLC RIO FTSE 100 Mining 31.58 8.0 3.4% 10.4 18.9% 86% 2.2 7,388 198 Robert Walters PLC RWA Small Cap Support Services 3.25 48.5 1.6% 28.2 6.2% 86% 1.0 15 172 Rolls-Royce Group PLC RR. FTSE 100 Aerospace & Defense 11.50 13.9 1.7% 32.1 10.5% 90% 1.7 1,218 106 Rotork PLC ROR FTSE 250 Industrial Engineering 28.63 28.2 1.5% 47.5 17.5% 100% 0.0 105 33 Royal Dutch Shell PLC RDSB FTSE 100 Oil & Gas Producers 21.60 9.2 5.1% 10.2 8.6% 81% 1.1 21,232 99 RPC Group PLC RPC FTSE 250 General Industrials 5.10 13.4 2.9% 20.5 11.5% 86% 3.0 71 94 RPS Group PLC RPS FTSE 250 Support Services 2.90 22.7 2.2% 22.5 11.3% 90% 0.6 51
Stock Screen - Sorted by Name Colour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high Share (Value) (Value) (Growth) (Growth) Debt Earnings Rank Name EPIC Index Sector Price PE Ratio Div.Yield PE10 Rate Quality Ratio Power (m) 43 RSA Insurance Group PLC RSA FTSE 100 Nonlife Insurance 1.28 9.9 5.7% 9.4 4.4% 79% 0.0 785 188 S & U PLC SUS Small Cap Financial Services 14.55 15.8 3.2% 23.8 4.1% 81% 1.8 12 111 SABMiller PLC SAB FTSE 100 Beverages 32.54 23.1 2.0% 37.5 13.6% 95% 4.6 2,655 37 Sage Group (The) PLC SGE FTSE 100 Software & Computer Services 3.37 17.0 3.2% 22.7 13.1% 93% 0.7 303 19 Sainsbury (J) PLC SBRY FTSE 100 Food & Drug Retailers 3.95 14.3 4.2% 23.4 23.4% 90% 4.8 579 202 Savills PLC SVS FTSE 250 Real Estate Investment & Services 6.50 20.1 1.5% 22.7 0.8% 83% 0.0 64 200 Schroders PLC SDR FTSE 100 Financial Services 25.79 25.3 1.7% 33.7 9.6% 86% 6.2 359 125 Senior PLC SNR FTSE 250 Aerospace & Defense 2.98 16.2 1.6% 27.3 18.7% 88% 1.4 80 39 Serco Group PLC SRP FTSE 250 Support Services 5.57 14.7 1.8% 24.5 17.4% 100% 3.4 227 139 Severn Trent PLC SVT FTSE 100 Gas, Water & Multiutilities 18.57 22.4 4.1% 23.4 2.4% 86% 14.8 325 162 Shanks Group PLC SKS Small Cap Support Services 1.06 21.8 3.3% 16.0-1.8% 76% 8.8 40 95 Smith & Nephew PLC SN. FTSE 100 Health Care Equipment & Services 7.97 14.4 2.1% 22.4 13.1% 90% 0.5 577 213 Smith (DS) PLC SMDS FTSE 250 General Industrials 3.03 19.3 2.6% 30.8 3.7% 81% 6.5 148 159 Smiths Group PLC SMIN FTSE 100 General Industrials 14.35 15.1 2.8% 20.2 6.0% 81% 2.5 454 41 Smiths News PLC NWS Small Cap Support Services 2.10 12.3 4.4% 14.5 6.4% 86% 2.3 46 118 Spectris PLC SXS FTSE 250 Electronic & Electrical Equipment 23.12 19.3 1.7% 35.3 13.9% 95% 1.9 148 97 Speedy Hire PLC SDY Small Cap Support Services 0.65 75.6 0.8% 9.0-25.9% 81% 1.2 61 83 Spirax-Sarco Engineering PLC SPX FTSE 250 Industrial Engineering 29.18 22.8 1.9% 34.3 12.8% 100% 0.4 128 9 SSE PLC SSE FTSE 100 Electricity 14.16 17.7 5.9% 15.6 12.8% 88% 3.9 1,541 113 St Ives PLC SIV Small Cap Support Services 1.81 13.2 3.6% 10.2-10.6% 69% 1.0 29 216 St James's Place PLC STJ FTSE 250 Life Insurance 6.76 34.4 1.6% 48.4 8.5% 86% 0.0 123 38 Stagecoach Group PLC SGC FTSE 250 Travel & Leisure 3.52 12.2 2.4% 19.7 14.3% 90% 4.4 186 61 Standard Chartered PLC STAN FTSE 100 Banks 15.00 12.6 3.6% 15.2 7.1% 86% 0.0 4,093 54 Synergy Health PLC SYR FTSE 250 Health Care Equipment & Services 10.37 18.8 2.0% 29.2 16.4% 98% 5.0 41 170 Tarsus PLC TRS Small Cap Media 2.47 30.7 2.8% 27.0 10.0% 81% 1.8 14 153 Tate & Lyle PLC TATE FTSE 100 Food Producers 7.92 13.8 3.3% 17.9 2.2% 81% 2.7 333 181 Ted Baker PLC TED FTSE 250 Personal Goods 17.07 32.5 1.6% 46.5 9.7% 95% 0.7 30 155 Telecom plus PLC TEP FTSE 250 Fixed Line Telecommunications 15.43 40.4 2.0% 74.0 25.5% 90% 0.1 27 11 Tesco PLC TSCO FTSE 100 Food & Drug Retailers 3.64 9.6 4.1% 13.9 9.3% 95% 2.7 4,021 212 Tribal Group PLC TRB Small Cap Support Services 1.88 21.5 0.7% 17.2-8.7% 74% 1.2 15 10 Tullett Prebon PLC TLPR FTSE 250 Financial Services 3.18 7.7 5.3% 8.4 12.2% 86% 1.8 141 211 Tullow Oil PLC TLW FTSE 100 Oil & Gas Producers 9.43 22.4 1.3% 46.8 14.6% 81% 2.5 297 201 UK Mail Group PLC UKM Small Cap Industrial Transportation 5.85 23.4 3.2% 27.9 3.3% 74% 0.1 17 127 Ultra Electronics Holdings PLC ULE FTSE 250 Aerospace & Defense 19.34 20.7 2.1% 28.8 13.6% 88% 0.9 82 156 Unilever PLC ULVR FTSE 100 Food Producers 25.25 20.3 3.1% 20.2 5.2% 83% 3.0 2,732 166 United Drug PLC UDG FTSE 250 Food & Drug Retailers 3.12 18.6 0.5% 21.0 6.4% 86% 3.7 61 145 United Utilities Group PLC UU. FTSE 100 Gas, Water & Multiutilities 7.05 19.9 4.9% 16.6-4.0% 74% 14.4 428 6 Vedanta Resources PLC VED FTSE 100 Mining 10.63 32.8 3.5% 10.7 15.6% 90% 22.9 478 82 Victrex PLC VCT FTSE 250 Chemicals 16.50 19.5 2.3% 33.8 15.7% 95% 0.0 79 88 Vitec Group (The) PLC VTC Small Cap Industrial Engineering 7.03 14.8 3.1% 19.3 7.4% 86% 2.7 28 14 Vodafone Group PLC VOD FTSE 100 Mobile Telecommunications 2.25 13.7 4.5% 15.2 8.6% 95% 3.0 13,662 158 Vp PLC VP. Small Cap Support Services 4.98 20.7 2.5% 25.7 7.6% 86% 4.1 13 96 Weir Group PLC WEIR FTSE 100 Industrial Engineering 22.55 17.0 1.7% 34.5 21.6% 95% 4.1 265 120 Whitbread PLC WTB FTSE 100 Travel & Leisure 34.33 22.1 1.7% 38.3 14.0% 95% 1.7 308 93 William Hill PLC WMH FTSE 100 Travel & Leisure 4.01 16.3 2.6% 16.7-8.2% 90% 1.1 376 214 Wilmington Group PLC WIL Small Cap Media 2.16 28.7 3.2% 30.3 1.6% 67% 5.0 8 49 Wood Group (John) PLC WG. FTSE 250 Oil Equipment, Services & Distribution 8.12 17.3 1.3% 13.4 29.0% 86% 0.5 389 103 WPP Group PLC WPP FTSE 100 Media 13.25 20.2 2.2% 29.3 12.8% 93% 4.2 1,126 217 Xaar PLC XAR FTSE 250 Electronic & Electrical Equipment 8.42 42.8 0.5% 93.3 9.6% 79% 0.1 11
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